China has announced higher-than-expected exports and a surge in factory price inflation for July, reducing the pressure for an easing of monetary and fiscal policy.

The figures, released on Monday, showed China’s trade surplus grew last month by 4 per cent compared with July last year, on top of export growth of 26.9 per cent, reducing fears about a sharp slowdown in the economy at a time of fierce debate within the government over whether to take measures to stimulate higher growth and stop the currency rising.